Let's look at what these are and how you can earn from them.
In easy terms, cloud mining refers to renting someone else’s cloud computing facilities to mine cryptocurrency. It saves the user from paying for excessive computing power, operational costs, etc.
Several cloud mining companies offer services for the common person. However, due to the nature of these services, the mining contracts offered by companies reached their full capacity.
One of these companies is Shamining – a UK-based company that serves the globe and is one of the few companies whose mining contracts have not been exhausted.
With this method, you can easily rent mining equipment and pay the relevant costs. The company stays responsible for the physical accommodation, maintenance, and operation of the equipment. You can withdraw the revenue you generate to a Bitcoin wallet you specify.
However, we advise you to do your due diligence before opting for this method. The remote nature of mining comes with many risks and chances of scams. Cloud mining has long been controversial since there is too much reliance on companies that rent computing equipment.
People who invest in crypto are aware of the benefits of staking. If the cryptocurrency you have allows staking, such as Ethereum and Cosmos, you can 'stake' it. Staking means making your assets work for you by generating rewards. Like an interest-bearing savings account, the ‘staked’ assets earn you a percentage-rate reward over time.
It uses a 'consensus mechanism' known as Proof of Stake that ensures the verification and security of transactions. If you want to be a validator, you will be paid interest to reward your efforts.
However, if transaction validation seems too technical, you can opt for Proof of Stake blockchains. These blockchains allow you to delegate your stakes to other third parties who undertake the role of transaction validation. While this technique offers slightly lesser rewards, both the methods in the PoS system offer you a chance to generate passive income using your crypto.
Staking allows investors to make their assets work to generate additional income rather than sit idly in their wallets. It also helps ensure the efficiency and security of the blockchain by making it resistant to attacks.
Lending Your Crypto
Many companies allow you to earn interest on a certain level of deposits. With this method, you don’t have to purchase any additional crypto – provided that your existing stack meets the required level – and can earn rewards.